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FAQ - Online Banking

March 9, 2016

Can we do online banking with our external checking accounts?

Frequently Asked Questions about Onling Banking

Online banking can be an easy and quick way to manage bank accounts. Online banking for businesses, however, has been slow to be implemented for a variety of reasons. Some banks are insisting certain items be accessed online to cutdown on their mailing costs. Here is a guide to online banking for CFAES units with external checking accounts.

Unit Leader Review of Bank Statement:

The unit leader needs to access the bank statement directly. In paper form that means they need to open the envelope, in electronic form that means they will need to access the online account and download the statement, this cannot be delegated to someone else.

Once downloaded they should do a quick reconciliation of the account:

Review all check images related to that month’s transactions.

o Check the signatures to verify everything was signed appropriately.

o Check the payee to make sure that nothing changed from the time the check was signed to the time it was cashed.

o Check the amounts to make sure nothing changed from the time the check was signed to the time it was cashed.

Pull the receipt ledger from the front desk.

o Trace deposits back to the ledger to verify that everything received was deposited.

o Review the ledger to verify all fields on the receipt ledger are complete and logical.

Review the remaining parts of the bank statement and address issues such as fees or overages, bank balances that exceed CFAES guidelines ($20,000), or any other activity that is unexpected.

Provide bank statement to Bank Statement Reconciler for a second reconciliation, matching to check ledger and ledger balance verification.

For Reconciliation:

Electronic statements can be used for reconciliation and for Unit Director review. A printed version isn’t required, but a saved electronic version must be made available for auditors upon request so be sure to create an online filing system that is accessible by the reconciler and unit leader.

The reconciler should do a second review of the checks and deposits, match the checks cashed to the check ledger and verify the balance on the ledger matches the bank statement.

For deposits, withdrawals and checks:

Electronic transaction processing is not usually allowable for CFAES bank accounts. Some exceptions may apply (ex. online processing of postage meter replenishments) but please request permission from Cindy Buxton before proceeding with any electronic transaction.

Debit/Credit cards:

Payment cards are not permitted on external University bank accounts. Use the University’s PCard or Office of Sponsored Programs Payment card programs instead.